New from Prudential: Level Term Life to Age 65

Estate planning is a topic many do not want to address. No one wants to think about losing the ones they love. A life without you may be a difficult concept to embrace. But it is important to take care of it as soon as possible. Unfortunately, in life, anything can happen.

Whole life policies, while often carrying higher premiums, may offer investment opportunities as well as death benefits for those left behind. Consumers with large mortgages or young children may look into term-life insurance, which usually costs less and provides coverage for a specific period of time. Many term policies can cover a 10 to 20 year period that can actually provide some income after you are gone.

There are several other factors for persons with young children to consider. When planning their estate, they should seriously look into who will take care of their young ones if they suddenly pass away. A family member or best friend may be a good choice, but should be vested accordingly.

“You can get somebody who really cares about the child and takes care of them, but the temptation when they get into financial trouble is to dip into the child’s money,” Frank Allen Jr., an estate-planning lawyer in Washington, says. “That’s something that nobody intends to do, but it happens.”

Those with significant savings or real estate may want to turn to a lawyer for guidance when planning their estate, which would include writing a legal will and documenting where your possessions are to be transferred.

Protecting the financial future of your loved ones after your death may be one of the most important decisions you make during your lifetime.